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a day ago
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- Yahoo
Austin named top city for grads thanks to affordable rent
(NewsNation) — Graduation is an optimistic day for many, but some may have a rough road ahead as they face the toughest job market in years. According to an analysis by the Federal Reserve Bank of New York, 41% of new graduates are now working in jobs that typically don't require a college degree, up from 39% in January. That's why it's so important where these recent college grads end up. analyzed more than 300 cities and towns to find the most 'grad-friendly' rental markets in 2025, weighing factors like housing affordability, rental availability and job opportunities. Austin, Texas, topped the list for the second year in a row thanks to its low rent-to-income ratio (18.9%) and high share of jobs (29.4%) that require a bachelor's degree but no prior experience. Recent college grads face toughest job market in years Austin Mayor Kirk Watson told 'Morning in America' that the city not only offers a vibrant lifestyle but also significant opportunities in tech for young professionals building their careers. 'Everywhere from manufacturing in tech and semiconductor, of course, with the Samsung and NXP and all of the different semiconductors manufacturers we have, we have a real opportunity. We have real opportunities there,' Watson said. 'The technology field is, is, is across the board in Austin, Texas, and that's only getting better,' he said. We have a fairly new medical school at the University of Texas at Austin, and that medical school is getting us into bio and health-related technology and jobs like never before.' Spelling bee champ wins by visualizing words typed on keyboard Watson added that the city is increasing funding to its infrastructure to help provide career opportunities, like the Austin Infrastructure Academy. 'That's an academy that we're putting together so that we can make sure we have people that can do the work that we need to do to work in this infrastructure sector of our economy,' he said. 'We're working closely with the trade unions, working closely with our community college, and so we're able to focus on infrastructure in a way that I think is going to allow us to have even greater success.' Austin also has a lively cultural scene, hosting events such as the SXSW Conference and Austin City Limits Music Festival. 'It's not really mentioned in this report, but is it's a pretty fun place to live, too, particularly if you're a young person looking to make a life and make a career,' Watson said. NewsNation's Andrew Dorn contribute to this report. Copyright 2025 Nexstar Media, Inc. All rights reserved. This material may not be published, broadcast, rewritten, or redistributed.
Yahoo
a day ago
- Business
- Yahoo
Woman says she and husband paid off $200K debt in 5 years: Here's how
Tinsley Crisp knows what it feels like to be overwhelmed by debt. At 31, the stylist and writer is now proudly debt-free -- but just a few years ago, she and her husband, Ben, were staring down a mountain of $200,000 instudent loan debt. "It felt like I would never accomplish this goal," she told "Good Morning America" in an interview aired that aired Friday. "I would be paying this off until the day that I died." The couple initially started with around $30,000 in student loan debt, but when Ben decided to go back to school to become a physician assistant, their total ballooned to $200,000. According to the Federal Reserve Bank of New York, student loan debt in the U.S. has reached a staggering $1.63 trillion as of the first quarter of 2025. For many borrowers, the weight of repayment can feel crushing. How this couple paid off $52K debt in 18 months But Crisp and her husband, who now works full-time as a physician assistant, decided to take control of their financial future. With the help of a financial planner, the couple created a five-year plan and stuck to it. "We said, 'This is how much we're making. This is how much debt there is. These are our goals.' And we really laid it all out there," Crisp said. From there, Crisp and her husband -- who did not disclose their total income to "GMA" -- built a detailed monthly budget and a debt-payoff timeline. Crisp said the financial planner helped them determine how much they needed to pay each month to stay on track. After five years of what they called disciplined budgeting, intentional sacrifices and unwavering commitment, the couple made their final payment and rewarded themselves earlier this year with a dream trip to Greece. "To get to that moment and to enjoy that vacation really felt like our dream becoming a reality," Crisp said. Now, Crisp and her husband are sharing their three tips for paying off debt. One of the biggest changes they made was learning to budget down to the dollar. "We really wanted to account for everything," she said. "And I mean, like everything. It came down to, we were planning out when I bought my shampoo and my conditioner. Even if it was $5 a month, just to know that in three months, when I'm probably going to run out again, we would have the money there." Sticking to their budget meant letting go of a lot of extras, especially travel. "Whenever we chose to miss friends' weddings, family vacations, maybe even extra trips to visit family just for the holidays, it was tough," she admitted. "And now looking back, I don't regret it at all, because now we're able to do so much more." Another key decision she said was to resist lifestyle inflation. "I was driving a car for over 10 years and I was embarrassed to show up to work with that car," she said. "However, I knew that I would also be embarrassed 10 years later if I was in a similar financial situation because I wasn't responsible with my money at a young age." Woman says she and husband paid off $200K debt in 5 years: Here's how originally appeared on
a day ago
- Business
Woman says she and husband paid off $200K debt in 5 years: Here's how
Tinsley Crisp knows what it feels like to be overwhelmed by debt. At 31, the stylist and writer is now proudly debt-free -- but just a few years ago, she and her husband, Ben, were staring down a mountain of $200,000 in student loan debt. "It felt like I would never accomplish this goal," she told " Good Morning America" in an interview aired that aired Friday. "I would be paying this off until the day that I died." The couple initially started with around $30,000 in student loan debt, but when Ben decided to go back to school to become a physician assistant, their total ballooned to $200,000. According to the Federal Reserve Bank of New York, student loan debt in the U.S. has reached a staggering $1.63 trillion as of the first quarter of 2025. For many borrowers, the weight of repayment can feel crushing. But Crisp and her husband, who now works full-time as a physician assistant, decided to take control of their financial future. With the help of a financial planner, the couple created a five-year plan and stuck to it. "We said, 'This is how much we're making. This is how much debt there is. These are our goals.' And we really laid it all out there," Crisp said. From there, Crisp and her husband -- who did not disclose their total income to "GMA" -- built a detailed monthly budget and a debt-payoff timeline. Crisp said the financial planner helped them determine how much they needed to pay each month to stay on track. After five years of what they called disciplined budgeting, intentional sacrifices and unwavering commitment, the couple made their final payment and rewarded themselves earlier this year with a dream trip to Greece. "To get to that moment and to enjoy that vacation really felt like our dream becoming a reality," she recalled. Now, Crisp and her husband are sharing their three tips for paying off debt. 1. Get ultra-specific with your budget One of the biggest changes they made was learning to budget down to the dollar. "We really wanted to account for everything," she said. "And I mean, like everything. It came down to, we were planning out when I bought my shampoo and my conditioner. Even if it was $5 a month, just to know that in three months, when I'm probably going to run out again, we would have the money there." 2. Sacrifice now for freedom later Sticking to their budget meant letting go of a lot of extras, especially travel. "Whenever we chose to miss friends' weddings, family vacations, maybe even extra trips to visit family just for the holidays, it was tough," she admitted. "And now looking back, I don't regret it at all, because now we're able to do so much more." 3. Ignore the pressure to 'upgrade' Another key decision she said was to resist lifestyle inflation. "I was driving a car for over 10 years and I was embarrassed to show up to work with that car," she said. "However, I knew that I would also be embarrassed 10 years later if I was in a similar financial situation because I wasn't responsible with my money at a young age."
Yahoo
2 days ago
- Business
- Yahoo
College graduates should brace for tougher job hunt with this major
The job market for computer science graduates is becoming increasingly competitive, with the major now ranking among those with the highest unemployment rates for recent graduates. Computer science holds the seventh spot among undergraduate majors with the highest unemployment rate at 6.1%, according to the Federal Reserve Bank of New York. In comparison to other STEM majors, computer science ranked above physics, which has a 7.8% unemployment rate and computer engineering with a 7.5% unemployment rate. Computer science also ranked above humanities majors like anthropology, which had a 9.4% unemployment rate and fine arts, at 7%. While overall demand for computer science professionals surged during the 'tech boom' of the COVID-19 pandemic, recent economic shifts have altered the landscape, according to Newsweek. For instance, major tech companies such as Amazon, Google and Microsoft have laid off more than 60,000 tech workers to boost profits, which has made that job market less attractive to some, the Economic Times reported. The labor market for recent college graduates has also deteriorated, the Federal Reserve Bank of New York noted, adding that the unemployment rate for this group jumped to 5.8% in the first quarter of 2025, the highest reading since 2021. Furthermore, the underemployment rate rose sharply to 41.2%. Anthropology, 9.4% Physics, 7.8% Computer Engineering, 7.5% Commercial Art and Graphic Design, 7.2% Fine Arts, 7% Sociology, 6.7% Computer Science, 6.1% Chemistry, 6.1% Information Systems and Management, 5.6% Public Policy and Law, 5.5% With cannabis industry struggling, Western Mass. sellers and growers seek relief from high court 'Problem landlord' Springfield Gardens named in federal lawsuit by Fannie Mae Crowding aisles is 'strictly forbidden' on this airline, fines could be imposed Shakira, Jason Aldean's Fenway shows canceled due to 'unforeseen circumstances' Placing pigeons in the park on purpose in Springfield Read the original article on MassLive.
Yahoo
2 days ago
- Business
- Yahoo
Millions of student loan borrowers are behind on payments. What it means for the economy.
After a roughly five-year hiatus, student loan borrowers are once again seeing their credit scores plunge if they fall behind on payments. Economists say it could be bad news for borrowers and the economy at large. A recent report from the Federal Reserve Bank of New York found the delinquency rate for student loans surged from less than 1% in the fourth quarter of 2024 to nearly 8% in the first quarter of this year as a pause on reporting delinquent loans ended. That's sent some credit scores into a free fall, making it more difficult for borrowers to secure affordable loans or pull off major purchases. The Federal Reserve Bank of New York said more than 2.2 million newly delinquent student loan borrowers' credit scores plunged more than 100 points. More than 1 million had scores drop at least 150 points. "We could see millions of borrowers potentially locked out of the conventional mortgage market, they could see the cost of a car loan double, they could find it harder to find rental housing," said Aissa Canchola Bañez, the policy director at the Student Borrower Protection Center, an advocacy group focused on alleviating student loan debt. "The immediate harm, but also the long-term harm, is just massive." The federal government's pandemic-era student loan payment pause lifted in September 2023, but it wasn't until the fall of 2024 that payments at least 90 days past due could be reported to credit bureaus. Those delinquencies started appearing on credit reports in 2025. As of the first quarter, nearly 1 in 4 student loan borrowers required to make payments were behind on their loans, according to the Federal Reserve Bank of New York. Much of that surge could be driven by confusion around loan payments restarting, according to Beth Akers, a senior fellow who focuses on the economics of higher education at the American Enterprise Institute, a conservative think tank. The pause – which began under President Donald Trump's first administration – was extended multiple times under former President Joe Biden. Meanwhile, online rumors claimed all student loans had been permanently canceled under Biden. Biden did attempt to forgive $400 billion worth of student debt, but the plan was ultimately struck down by the Supreme Court. 'For a long time, I think borrowers thought their loans were canceled. Or that they'd never have to repay them. And I don't blame anyone for believing that,' Akers said. 'We really confused the heck out of borrowers.' Other borrowers may not be financially prepared to pay back their loans, especially after falling out of habit with their monthly payments. "The economy is very different than it was pre-COVID," said Betsy Mayotte, president of The Institute of Student Loan Advisors, a nonprofit based in Plymouth, Massachusetts. "Things like housing and eggs and lettuce cost a lot more than they did prior to COVID. So a payment that might have been affordable in 2020 might not be affordable now." A paper co-authored by Michael Dinerstein, an associate professor of economics at Duke University in North Carolina, found the student loan pause allowed borrowers to take on other forms of debt, such as mortgages, credit card loans and auto loans. Now, those borrowers are also on the hook for student loan payments that can cost hundreds, if not thousands, each month. Another possible factor? This year's surge may be tied to an influx of late payments that would have been spread out across multiple years without the pause, according to Kristin Blagg, principal research associate in the Work, Education, and Labor Division at the Urban Institute, a Washington, D.C.-based think tank. "In an average year, about a million people enter default," Blagg said. "And what we've had is almost five years of students not getting to that default period. So you can think of this being almost a build-up of folks who would have defaulted during that time who are just now reaching that point." About 5.6 million borrowers were considered newly delinquent in the first quarter of 2025. The Federal Reserve Bank of New York in March estimated that more than 9 million student loan borrowers will face significant credit score decreases by the end of June. Reese Wallace, 34 of Oakland, California, watched his credit score plunge from above 700 to 488 this year after he stopped paying his student loans. A 2023 graduate from the California College of the Arts, Wallace left school with roughly $50,000 worth of student debt. Monthly payments were nearly $500 per month, which Wallace said was untenable on a studio artist wage in the Bay Area. Wallace said he quit paying his loans last year to put the money toward graduate school applications, under the impression that his loans would be automatically deferred as he applied. He realized that wasn't true when his application for student housing at the University of Nevada, Las Vegas, was rejected due to his low credit score. The credit score has thrown a wrench in Wallace's plans to move for graduate school. He had to get a cosigner for housing, and worries he'll have trouble affording a car after years of traveling with public transportation in California. "What kind of vehicle can I get with a 488 credit score?' he asked. 'It's honestly going to be really, really difficult.' Akers believes resuming student loan payments is fair to taxpayers, but said there can be 'serious trickle-down implications' when credit scores take a hit, especially since the baseline interest rate is already high. 'People are quick to think about the ability to finance the purchase of a new home at an affordable interest rate,' she said. 'But also employers look at credit scores sometimes. When you're renting a home, they look at your credit score.' Borrowers could find themselves in more hot water if they continue to miss payments. After 270 days, the government can seize wages, tax returns or Social Security benefits. The Office of Federal Student Aid is expected to send notices on wage garnishments this summer. Student loan defaults: Benefits could be withheld from 5.3 million defaulted student loan borrowers, feds say Economists warn restarted payments and sinking credit scores could deliver another hit to an economy that has already shown signs of slowing this year. 'It's another potential drag,' Blagg said. 'We don't have a good sense of how big it is compared to all the other things that are going on in the moment, but any time there's a dollar spent servicing loans, it's a dollar that's not being put into the economy or saved for a big purchase." Morgan Stanley economists estimate increased loan payments could lower real GDP growth by up to 0.15 percentage points this year as payments increase by $1 billion to $3 billion per month. Their May 5 report says the GDP impact is "relatively small," but describes this as "another headwind" for consumers. Canchola Bañez of the Student Borrower Protection Center shared advice for borrowers who are delinquent on their loans: Borrowers should explore repayment options at Canchola Bañez said income-driven repayment plans are likely their best option. This shift could take time; there's a backlog of roughly 2 million federal student loan borrowers requesting income-driven repayment plans, according to figures from the Education Department. Borrowers can be in forbearance while their application is processing, which means they won't have to make their loan payments while they're waiting for approval on a more affordable payment plan. If a borrower is more than 270 days behind on their loan, the Education Department lays out three options to get out of default: Repay the loan in full (not practical for most borrowers). Loan rehabilitation: Borrowers can contact the loan holder and agree in writing to make nine affordable monthly payments within 20 days of a set due date, all within 10 consecutive months. Loan consolidation: Borrowers agree to repay a new "Direct Consolidation Loan" under an income-driven repayment plan or make three full, consecutive, voluntary, on-time monthly payments on the defaulted loan before it is consolidated. While this option is faster, accrued interest is added to the principal balance, which could have borrowers paying more overall. This article originally appeared on USA TODAY: Student loan delinquencies are up. What it means for the economy.
